Question 1

Why is the executive summary so important for a business plan?

Accepted Answer

Prospective investors typically allocate

Question 2

With the right assistance from professional sources (e.g. ,attorneys,accounting firms,incubator services),the entrepreneur can avoid direct involvement in developing the business plan.

Accepted Answer

A) True 
 B)False

Question 3

Jill is writing a business plan for a small home based operation.If well written,the business plan will assist her in determining if

Accepted Answer

A) the business aligns with personal goals. 
B) an investor would be a perfect fit for the proposed company. 
C) suppliers can be found for the operation. 
D) outsiders can be made into insiders. 
A) the business aligns with personal goals. 
B) an investor would be a perfect fit for the proposed company. 
C) suppliers can be found for the operation. 
D) outsiders can be made into insiders.

Question 4

Quentin,a venture capitalist,is scanning Mildred's business plan to see if and when he can recoup his investment and make a profit.Quentin is looking for:

Accepted Answer

A) a financial plan. 
B) a marketing plan. 
C) an investment plan. 
D) an exit strategy. 
A) a financial plan. 
B) a marketing plan. 
C) an investment plan. 
D) an exit strategy.

Question 5

A business plan should generally project financial and operational aspects of the proposed business for the first

Accepted Answer

A) six months. 
B) one year. 
C) three to five years. 
D) seven years. 
A) six months. 
B) one year. 
C) three to five years. 
D) seven years.

Question 6

Writing an effective plan is more important for internal purposes than for persons outside of the firm.

Accepted Answer

A) True 
 B)False

Question 7

A business plan is best described as a

Accepted Answer

A) crystal ball picture. 
B) money plan. 
C) contingency plan. 
D) game plan. 
A) crystal ball picture. 
B) money plan. 
C) contingency plan. 
D) game plan.

Question 8

In a business plan,the legal form of organization would be discussed in the

Accepted Answer

A) financial plan. 
B) company description. 
C) executive summary. 
D) marketing plan. 
A) financial plan. 
B) company description. 
C) executive summary. 
D) marketing plan.

Question 9

Jerry is starting an athletic apparel store,with his brother-in-law providing all funding.Identify possible insiders and outsiders and explain how each would use a business plan.

Accepted Answer

Insiders would include Jerry and his man

Question 10

Prentiss is writing about the potential lack of customer acceptance of his product and possible reactions from competitors.Prentiss is writing the ____________ of the business plan.

Accepted Answer

A) critical risks section 
B) executive summary 
C) marketing plan 
D) exit strategy 
A) critical risks section 
B) executive summary 
C) marketing plan 
D) exit strategy

Question 11

The industry,target customer,and competitor analysis section should:

Accepted Answer

A) begin to describe the company. 
B) present the opportunity and demonstrate that a market segment is understood. 
C) introduce the product or service the company will offer. 
D) identify the company's objectives for sales and growth. 
A) begin to describe the company. 
B) present the opportunity and demonstrate that a market segment is understood. 
C) introduce the product or service the company will offer. 
D) identify the company's objectives for sales and growth.

Question 12

Ideally,investors like a business plan that shows evidence of

Accepted Answer

A) a management staff that will minimize overhead. 
B) a well-balanced managerial team. 
C) an entrepreneur who has studied management. 
D) an entrepreneur who will spend more time managing than selling. 
A) a management staff that will minimize overhead. 
B) a well-balanced managerial team. 
C) an entrepreneur who has studied management. 
D) an entrepreneur who will spend more time managing than selling.

Question 13

Which question is key for forecasting revenues?

Accepted Answer

A) Who are the most likely customers? 
B) What events will cause the customer to need the product? 
C) How will the product compare to the competition? 
D) All of the answers to the above questions are important to forecast revenues. 
A) Who are the most likely customers? 
B) What events will cause the customer to need the product? 
C) How will the product compare to the competition? 
D) All of the answers to the above questions are important to forecast revenues.

Question 14

The narrative form of an executive summary

Accepted Answer

A) is more straightforward than the synopsis form. 
B) allows the author to include hyperbole that builds enthusiasm. 
C) is a better format for ventures that have one dominant advantage. 
D) gives each topic relatively equal treatment. 
A) is more straightforward than the synopsis form. 
B) allows the author to include hyperbole that builds enthusiasm. 
C) is a better format for ventures that have one dominant advantage. 
D) gives each topic relatively equal treatment.

Question 15

In considering the content of a business plan,an entrepreneur should think first and foremost about

Accepted Answer

A) how to present factors related to the opportunity. 
B) formulating effective strategies and financial projections. 
C) who will be reviewing the plan. 
D) how to protect the confidentially of the plan. 
A) how to present factors related to the opportunity. 
B) formulating effective strategies and financial projections. 
C) who will be reviewing the plan. 
D) how to protect the confidentially of the plan.

Question 16

A business plan should represent the entrepreneur's vision and goals for the proposed company.

Accepted Answer

A) True 
 B)False

Question 17

John is a prospective entrepreneur who has just presented his business plan to a venture capitalist,enthusiastically pointing out the unique features of a new invention he is promoting.The most likely question in the venture capitalist's mind is:

Accepted Answer

A) How strong is the patent protection? 
B) How costly will it be to produce the product? 
C) What is the demand for the product? 
D) What management skills does this venture have? 
A) How strong is the patent protection? 
B) How costly will it be to produce the product? 
C) What is the demand for the product? 
D) What management skills does this venture have?

Question 18

An entrepreneur should think of ways to ____________ the resources necessary for startup.

Accepted Answer

A) outsource 
B) insure 
C) maximize 
D) minimize 
A) outsource 
B) insure 
C) maximize 
D) minimize

Question 19

An overview of the significant points of a business plan appears in the

Accepted Answer

A) financial plan. 
B) general company description. 
C) executive summary. 
D) operating plan. 
A) financial plan. 
B) general company description. 
C) executive summary. 
D) operating plan.

Question 20

Jim is developing a business plan and has limited funds.Which person would be the best fit to offer assistance to Jim?

Accepted Answer

A) a lawyer specializing in business plans 
B) a SCORE representative 
C) a consultant in the industry Jim is trying to enter 
D) an accountant 
A) a lawyer specializing in business plans 
B) a SCORE representative 
C) a consultant in the industry Jim is trying to enter 
D) an accountant

Exam 6: The Business Plan: Visualizing the Dream

Why is the executive summary so important for a business plan?

With the right assistance from professional sources (e.g. ,attorneys,accounting firms,incubator services),the entrepreneur can avoid direct involvement in developing the business plan.

Jill is writing a business plan for a small home based operation.If well written,the business plan will assist her in determining if

Quentin,a venture capitalist,is scanning Mildred's business plan to see if and when he can recoup his investment and make a profit.Quentin is looking for:

A business plan should generally project financial and operational aspects of the proposed business for the first

Writing an effective plan is more important for internal purposes than for persons outside of the firm.

A business plan is best described as a

In a business plan,the legal form of organization would be discussed in the

Jerry is starting an athletic apparel store,with his brother-in-law providing all funding.Identify possible insiders and outsiders and explain how each would use a business plan.

Prentiss is writing about the potential lack of customer acceptance of his product and possible reactions from competitors.Prentiss is writing the ____________ of the business plan.

The industry,target customer,and competitor analysis section should:

Ideally,investors like a business plan that shows evidence of

Which question is key for forecasting revenues?

The narrative form of an executive summary

In considering the content of a business plan,an entrepreneur should think first and foremost about

A business plan should represent the entrepreneur's vision and goals for the proposed company.

John is a prospective entrepreneur who has just presented his business plan to a venture capitalist,enthusiastically pointing out the unique features of a new invention he is promoting.The most likely question in the venture capitalist's mind is:

An entrepreneur should think of ways to ____________ the resources necessary for startup.

An overview of the significant points of a business plan appears in the

Jim is developing a business plan and has limited funds.Which person would be the best fit to offer assistance to Jim?

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Marketing Plan

The Organizational Plan: Teams, legal Structures, alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

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